Blog Starting Business In Russia
A joint venture with a foreign participant is a legal entity that is formed by means of a merger of capital between a Russian entity and a representative of another country. The establishment of such a company has traditionally been seen as positive because it allows the attraction of foreign capital and foreign technology into Russia.
Registration of a company, namely a limited liability company, is not a complicated or labor-intensive procedure today. To do this, it is necessary to have one or more founders, an authorized capital of more than 10,000 rubles, a charter, a protocol on the establishment of an LLC and an agreement if there are several founders. The latter document performs a rather important function – it fixes the size, procedure and terms of payment of shares in the authorized capital for each of the founders in order to avoid a dispute.
Registration of a legal entity is an event for the opening of a new limited liability company for conducting business. It is generally accepted that entrepreneurs open companies in the place where they live and are going to do business. However, regarding the registration of an LLC in another city, the law says that there is a right to open a company in any city, village, settlement. Thus, there are no legal restrictions. Also, it does not matter for the opening whether the potential founder or director is in the locality at the moment. Moreover, registration of the founder or director at the place of residence is also not important. The only clarification concerns the mandatory availability of a clear and detailed legal address of the future LLC. To register it, it is enough to rent non-residential premises or buy real estate in the location in which the LLC will be opened. In this article we will consider in detail the issues related to the opening of a legal entity in another city.
Russia is a country with great opportunities for entrepreneurs, and in order to successfully start your way in the business world, it is important to know the key steps and implementation requirements.
The settlement account of a foreign company in Russia is a deposit opened in one of the Russian banks for mutual settlements with counterparties and other domestic and international financial transactions. It is important to take into account that any foreign company that operates in Russia has the right to open a current account with an authorized banking institution. This right is prescribed in Article 13 of Federal Law No. 173-FZ dated 10.12.2003 “On Currency Regulation and Currency Control”. What needs to be done for this, we will tell you in this article.
Bankruptcy is the inability of a legal entity to fulfill financial obligations. The bankruptcy procedure is initiated if a limited liability company does not pay its obligations for more than 3 months and the total amount of debt exceeds 300,000 rubles.
Russia has one of the largest economies in the world as well as a significant domestic market. Foreign investors interested in establishing a business in the nation are drawn to the country’s economic potential. The nation has many special economic zones that attract investment in industries like industrial production, research and development, logistics, and tourism.
According to Russian legislation, both foreign legal entities and individuals can create limited liability companies on the territory of the Russian Federation. At the same time, an LLC may be established by a foreign citizen independently or jointly with citizens of the Russian Federation.
Every firm from abroad that is going to start commerce in Russia is obliged to register its local office here. According to current legislation, foreign firm in Russia can register a branch, a representative office, or LTD. After it is registered, a foreign business can legally sell their goods or services here, as well as trade without intermediaries. Each of the above structures has its pros, cons, and limitations. Therefore, depending on the goals set, one of these forms may be preferable.
Non-resident is an individual who lives in the country for at least 183 days a year but is not a citizen. As a rule, these are foreigners, sometimes we are talking about stateless people. The basic law that governs the activities of non-residents is Federal law «Concerning the Legal Status of Foreign Citizens in the Russian Federation». It does not provide for significant restrictions on entrepreneurship.
Cooperation with foreign partners is a valuable resource for business, which can bring new prospects, customers, and opportunities for development. However, successful cooperation requires a deep understanding of the legislative framework, the specifics of document management and handling of various types of foreign partners. In this article, we will pick apart the key aspects of business with foreign partners, as well as how to work effectively with them.
